India

Fuel strike hits three states

Article published on the 2008-06-05 Latest update 2008-06-05 13:51 TU

Protestors burn an effigy of India's Prime Minister Manmohan Singh
(Photo: Reuters)

Three Indian states were hit by general strikes today, as Communist and Hindu-nationalist parties led protests at Wednesday's rise in fuel prices. Rail and air transport were badly hit and industry and tea plantations were affected. Streets in the states' main cities were deserted, apart from angry demonstrations against the government-ordered price hikes.

Shops, schools and offices were closed in West Bengal, Tripura and Kerala, all states with left-wing governments.

India imports 70 per cent of its oil but, as crude costs soar, prices rises of eleven per cent for petrol and 9.4 per cent for diesel were announced yesterday.

The left-wing parties, the largest of which is the Communist Party Marxist (CPI-M) which has run West Bengal for decades, are keepiong the government in power at federal level.

But, with their voters' living standards badly hit, they have launched a week of protests. Food price rises have already contributed to an 8.1 per cent inflation rate.

National elections are due to take place within a year.

Prime Minister Manmohan Singh and Congress Party president Sonia Gandhi have asked state chief ministers to cut sales tax on petroleum products.

In Malaysia, Prime Minister Abdullah Ahmad Badawi announced that petrol prices will rise 40 per cent as the government removes controls so as to reduce the cost of subsidies.